Paying for life's essentials is now so costly that we spend most of our time working just to survive.

For a couple with two school-age children earning an average joint gross annual income of #28,500 - #78 a day - there is little room for luxuries.

Paying for essential bills takes the lion's share of their money before they have considered any extras.

Those falling below the average joint wage can find making ends meet is a real challenge.

According to the Daily Mirror's calculations it takes an average-earning household 357.5 paid days every year just to cover essential expenses, leaving only a week of free money.

The East London Community Organisation's research has revealed that in a two-child family with one full-time and one part-time working parent, each needs to be earning a minimum of #6.30 an hour to remain above the poverty line.

Yet many struggle to manage on less.

We talked to a selection of families to see how many days' income it takes for them to cover their essential annual costs and discovered how cleverly they budget to ensure they still have spare cash.

ABOVE AVERAGE INCOME: 160 FREE DAYS

ARMY major Ross Thomson and his wife Samantha live on a gross annual income of #40,236 a year.

They live in Army quarters at Kingston, Surrey, costing #2,400 a year, with their two children, Joseph, one, and Catlin, three.

Income tax costs them #7,104 and national insurance is #2,124.

Housewife Samantha, 34, has a Legal and General stakeholder pension costing #2,424. The house insurance bill is #300, they spend #3,000 on food, and clothes for Samantha and Ross, 33, amounts to #1,200 a year. Maintaining their Army quarters costs about #1,000 and their motoring bills are #1,320.

Pre-school bills and clothing for the kids total #1,704. But their annual income includes #1,236 in child benefit.

Their gross daily income is #110.23, meaning it takes them 205 days' pay to cover their #22,576 essential outgoings - leaving 160 days "free".

Samantha says: "We're pretty well off, as our Army accommodation is so reasonable.

"But being an Army wife means I am often left alone without my husband for long periods and the income can never compensate for that."

BELOW AVERAGE INCOME: 71FREE DAYS

SERVICE engineer Steven Ball, his wife Linda and their 16-month-old son Daniel live on a gross income of #23,100 a year.

Steven, 34, pays #3,799.28 income tax and #1,734.72 national insurance on his #22,200 salary and contributes #508.68 annually to a pension.

His net #16,667 income is boosted by #900 child benefits. Yet Steven, Linda, 33, and Daniel now have a #119,000 four-bedroom detached house in Daventry, Northants, with an #85,000 mortgage costing #3,516 annually.

House and contents insurance costs #272, they expect maintenance to be #1,500, utility bills #1,080 and #3,120 on food.

The couple's clothes cost #240 annually, yet they will spend #624 on clothes and nappies for Daniel. They have two cars but Steven's is subsidised, as an essential work tool, so motoring costs #2,220.

On a gross daily income of #63.28 it takes them 294 days to earn the #18,614 to cover essentials, leaving them 71 days "free".

Linda says: "I've taken a three-year career break. We would like another child, so we are careful."

Steven adds: "We're not extravagant and family is our priority."

SINGLE PARENT: 44 FREE DAYS

DEBORAH Robertson, of Finchley, North London, provides for herself and her children Amelia, nine, and Charlie, five, with a gross annual income of #13,884.

She earns #154 a week from her job as a part-time medical receptionist and receives a further #113 a week from the Government in working-families tax credit. She still pays #578.24 each year in income tax and national insurance contributions, reducing her net income to #13,305.76.

Her ex-husband, with whom she is still friendly, has not worked full-time since they divorced four years ago and has been unable to pay maintenance.

Deborah's father helps with the mortgage on her four-bedroom terraced house in North London, rather than leaving her money in his will.

She is financing the rest, so her accommodation costs are covered. Despite this saving, Deborah still faces a stack of annual bills.

She has a stakeholder pension and contributes #2,000 each year. Her gas and electricity bill is #600, as is her house and contents insurance.

She also spends #4,160 on groceries and about #800 on her clothes and shoes. House maintenance costs #200 a year, her children's clothes cost #1,600 and she pays out #600 on school lunches.

Deborah's father lent her a car and petrol costs her #1,040 a year.

Her gross income of #38 a day is stretched over 321 days each year to cover these costs, leaving her with only 44 days when her cash is "free".

She says: "I'm so grateful to my parents and to the Government for supplementing my income. Without this help I'd probably have to sell this house and move my kids away from the life they know and love."